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DLR Inventory Acquisition Blog Post

Inventory acquisition challenges were a huge headache last year. And, coincidentally, they’re a pain in the neck this year. Unfortunately, this industry-wide issue continues to have a profound impact on profitability. And while some dealers choose to “wait,” smart dealers find strategic ways to succeed now. We’ve compiled data from the past eighteen months that looked at the best practices of successful dealerships and solutions for managing inventory solutions. The resulting five operating strategies will help you and your entire operation tackle inventory hurdles and overcome supply chain challenges before it’s too late.

Operational strategy 1

Aim for ministerial cooperation

Your target? Tear down traditional silos that create division, confusion and disconnection! Your best tools for this strategy will be communication and data to spot opportunities, target trades, and acquire vehicles. Ask yourself if you are potentially missing opportunities because you are not collaborating across teams? 33% of successful dealerships use cross-departmental data to spot opportunities.

//33% of successful dealerships use cross-departmental data to spot opportunities.

Operational Strategy 2

Adjust your processes

It’s time to make a plan. Inventory acquisition goals should be tied to details about the compensation structure and client approach. Rethink your current compensation structure and set exciting new goals around bonuses to help drive acquisitions for all team members who play a role in the process.

Operational Strategy 3

Create useful reports and measure analytics

The information you track can help your dealership succeed. According to a study by Cox Automotive, 50% of successful dealerships use activity tracking for customer web and search history. Don’t just rely on your instincts, use the data to determine which used vehicles are in high demand. Then share the data with your team to be on the lookout for those cars as they cross your service lane.

Operational Strategy 4

It’s time to team up!

On top of the very frustrating and very real issue of out of stock plaguing your business, you still have to deal with…well, your business. Auto retail is often faced with multiple challenges at once (like retaining your best talent and fighting data wars). So your best bet is to partner with a vendor that has your back. If you want to improve your numbers, be sure to work with an expert who can help you optimize your reports and know your technology inside and out.

Operational strategy 5

think big (more)

A simple change of approach may not hit the mark. To meet the out-of-stock challenge, you’ll need to synchronize your marketing, sales, services, and operations. Cox Automotive provides first-party transactional data from Autotrader and Kelley Blue Book, allowing you to connect workflows across departments. This dealership-wide approach ensures that your entire business is protected against this challenge and the next.

For more on these strategies and other tips for acquiring inventory, check out our guide, “Working Solutions for Inventory Challenges.”

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